IMF: South Africa’s economic growth faces risks from public debt, state firm bailouts

JOHANNESBURG,July 30, 2018,(AltAfrica) – The International Monetary Fund on Monday kept South Africa’s economic growth forecast for 2018 unchanged at 1.5 percent but warned that the economy faced several headwinds, mainly the rapid rise in public debt and potential bailouts to state firms.

“The IMF’s concerns on fiscal policy relates to the rapid increase in public debt as a share of GDP, which has doubled over the last decade, depleting fiscal buffers and constraining fiscal policy space,” National Treasury said in a statement quoting the IMF’s article IV statement following a two week-long country visit by the lender’s officials.

AlternativeAfrica.com is an independent Pan African News Website dedicated primarily to influencing the negative narratives about Africa. We hope to do this by focusing and showcasing the many developmental strides sweeping across the continent.